Europe is grappling with soaring gas and electricity prices triggered by the Iran war, which effectively closed the Strait of Hormuz after attacks on February 28, 2026. The disruption has sent European gas prices up 20 percent initially and as much as 70 percent in March, with benchmark Dutch TTF futures rising from €38 to €54 per megawatt-hour. Electricity costs vary sharply by country's energy mix, with Germany's prices five times those of France and Italy, and double Spain's forecast for 2026.

The European Union imports more than 50 percent of its energy, primarily oil and gas, leaving it vulnerable to global shocks reminiscent of the 2022 Russian gas cutoff after the Ukraine invasion. Fossil fuels still dominate over 60 percent of total energy use, despite renewables reaching 45 percent of electricity production in some areas. This latest crisis has intensified debates over reviving nuclear power, which supplies 23 to 24 percent of EU electricity but fell from one-third in 1990 to 15 percent on average.

At the World Nuclear Energy Summit in Paris on March 10, 2026, hosted by France, European Commission President Ursula von der Leyen declared the decline in nuclear a "strategic mistake." She argued it exposed Europe to volatile fossil fuel imports, announcing a 200-million-euro guarantee from the EU carbon market for innovative nuclear technologies. French President Emmanuel Macron echoed this, stating nuclear power reconciles "independence and energy sovereignty with decarbonization and carbon neutrality." France, generating 65 percent of its electricity from nuclear, has shielded its prices and is advancing six new EPR reactors at existing sites like Penly, Gravelines, and Bugey, with plans for eight more.

Germany, which shut its last reactors in 2023 post-Fukushima, now faces a halved 2026 GDP growth forecast of 0.6 percent due to gas reliance. Chancellor Friedrich Merz labeled the phase-out a "serious strategic error," while Economy Minister Katherina Reiche admitted no baseload alternative to gas and urged rethinking nuclear, including small modular reactors (SMRs). UK Chancellor Rachel Reeves announced regulatory streamlining for nuclear to boost security and growth.

Other nations are shifting: Italy drafts laws to repeal its nuclear ban, Belgium seeks to extend its fleet, Sweden reversed a four-decade abandonment, and Greece debates SMRs despite seismic risks. Eleven EU states endorsed SMRs, with the Commission allocating €330 million through 2027 for SMRs and fusion research, targeting first units by the early 2030s and up to 53 gigawatts by 2050.

Proponents highlight nuclear's dispatchable baseload complementing renewables, potentially stabilizing prices as in France and Finland compared to phase-out nations. The EU's 8th Nuclear Illustrative Programme forecasts capacity rising from 98 gigawatts in 2025 to 109-150 gigawatts by 2050, requiring €241 billion in investments.

Challenges persist, however. New reactors take over a decade to build, with no EU SMR construction licenses issued as of early 2026. Public opposition lingers in Germany and Austria, waste management remains contentious, and environmental groups argue funds should prioritize renewables, whose costs have plummeted. Experts like Chris Aylett of Chatham House note that nuclear cannot quickly resolve crises, demanding massive investment just to hold current shares.

As prices strain households and industry, EU ministers discuss reviving 2022 crisis measures like price caps. Nuclear's revival gains traction for long-term security, but immediate relief depends on diversification and demand management.